Global Market Outlook on Methyl Ester Sulfonate

Powder detergents consumes approx. 88 percent of global MES demand which is expected to be the major demand driver for MES followed by dishwashing 
Increasing demand for powder detergents from growing economies like China and India is expected to drive the demand of MES until 2022

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Demand Market Outlook 

MES demand is expected to grow at 14 percent until 2022. APAC will be the major demand driving region for MES, due to high growth rate of more than 15–16 percent for powder detergents in China and India 
MES demand in Europe and North America is expected to be low, due to high maturity of powder detergents, as consumers have shifted toward liquid detergent

Global Capacity–Demand Analysis

MES is a biodegradable surfactant derived from palm oil that has evolved as a successful substitute for petrochemical derived LAS 
The MES market is expected to grow at 14 percent until 2022, mainly due to the increasing detergent consumption and as a potential replacement of LAS. Companies, like Keylink and Lion Group, are expected to bring in additional annual capacity of around 300,000 MT by 2018

Global Demand by Application

The detergents industry is expected to be the major demand driver for MES, due to the increasing disposable income in developing economies, like China and India in APAC.

Downstream Demand Outlook

Powder detergents: The major end-use application 

  • MES is mainly used in the production of powder detergents, which occupies the major demand. The growing powder detergent demand in APAC helps to drive the demand of MES

Dishwashing paste is the next major application 

  • Approximately 6–7 percent of MES finds application in dishwashing paste, which has a growing demand in developing regions, such as Asia, which is expected to grow by 3–4 percent until 2021

 MES in other applications 

  • MES is also used in industries, such as agricultural industry as dispersant, leather technology as de-fattener, plastic industry as emulsifier, rubber production as release agent, etc. These applications are expected to have negligible influence on MES demand.

 Supply–Demand Trends and Outlook: APAC

Demand Trends 

  • The demand for MES is expected to grow at 17 percent CAGR until 2022, due to increase in MES consumption in this region, as an alternative to LAS. Detergent industry exhibits high growth rate in APAC of more than 6 percent CAGR, mainly due to the increased consumption of powder detergent by India and China 
  • APAC dependence on the Middle East to source LAB for the production of LAS has increased in recent times, due to cheaper price of LAB in the Middle East. Increasing crude oil prices has influenced the increase in price of LAS in the Asian region, which will make the manufacturers to shift to cost effective and biodegradable surfactant MES

Supply Situation 

  • MES is well supplied and the manufacturers in this region are running their plants at low operating rate, due to lack of technical expertise in spray-dry Manufacturers like Wilmar have implemented Chemithon technology and are able to operate their plant at a higher operating rate